Crypto Academy Week-4 || Homework Post for @gbenga || Submitted by @simonnwigwe
The Ethereum Blockchain was launched in the year 2015 by Vitalik Buterin, these is meant to improve on the first generation crypto currency i.e the bitcoin Blockchain. The Blockchain is a ledger which allows more data to be stored continuously in it. The Ethereum Blockchain is so flexible that it allows its users to create for them selves their own needed program on the Blockchain known as Dapp i.e decentralized applications.
It's important we have they knowledge that Ethereum as we all know is not the currency but the Blockchain and the coin or currency is called Ether (ETH). These was clearly explained by the professor @gbenga, so if you need more clarification on these please do well to visit his lecture below. Link
They currency Ether came into existence in conjunction with the Blockchain at the same year i.e in the 2015. Today without much of time wasting I will be discussing in details one of the project built on the Ethereum Blockchain. Today I have chosen UNISWAP
These is a decentralized application, these implies that unlike other exchanges, uniswap doesn't take control of the user funds. It is also important to mention here that uniswap is one of most popular decentralized exchange we are having presently. In uniswap, a pricing algorithm is always incharge of determining the price of the assets in question.
There are two most important feature of uniswap and we will be looking at them very briefly.
SWAP:- These feature allows users to swap between Ethereum (ETH) and other different ERC-20 tokens.
POOL:- These feature allows users to earn by providing liquidity, i.e tokens into a smart contract and then at they end you will receive a pool tokens as your reward.
Merit of using Uniswap
There are several reasons why people tend to use Uniswap but for the want of time I will brief summarize few of them.
- Self custodial:- These implies that you funds present here is full in your custody i.e when ever you want to have access to it, you are very much free.
- Low trading fees:- They trading fees charged in uniswap is very low just about 0.30% for any trade carried out.
- New coins accessability:- Access to new coin is a lot more easier in uniswap since it is a decentralized applications. We all know that once a new coins enters they market, there are lots of fluctuations on it hence users of uniswap will want to be the first to have access to these coins.
Demerits of using Uniswap
Everything that has an advantage also has a disadvantage. In these case we have looked at they better view of uniswap, let's now consider the rough side of it.
- Failure in Transaction:- During the process of swapping in uniswap there is a high risk of failure in the transaction due to many factors.
- Fake Coins:- Since uniswap is a decentralized application, many people can decide to bring in their fake coin to transact it on the platform.
How to use Uniswap on your phone
The Importance of having or using Uniswap on our phones can not be over emphasised the reason is because since market prices fluctuate, we can not always be at a spot with our system to monitor the prices, but when you have it on your mobile phones you can actually monitor it always. There are very few steps to activate uniswap on your mobile device and below are they steps
- Go to your browser on your phone
- type uniswap and follow the instructions as you did on your PC.
How to identify and avoid them
As earlier discussed among they disadvantages of uniswap, I told us that fake Coins can always be added since it is a decentralized applications. We all know that unlike other transactions, crypto currency transaction are irreversible i.e once the transaction is done it can't be reverse. They goodness is that we can now dictate whether or not a coin is fake or real. To dictate these you need to visit Coingecko. It is a software incharge of verifying both fake and real currency or tokens.
How to use Uniswap
To use Uniswap, you must have set up either MetaMask, coinbase wallet etc. And they process to use it is listed below
- Head to https://uniswap.org
- Click “Use Uniswap” in the top right-hand corner.
- Go to “Connect wallet” in the top right-hand corner and select the wallet you have.
- Log into your wallet and allow it to connect to Uniswap.
- Select which token you’d like to swap, enter the amount and click “swap.”
- A preview window of the transaction will appear and you will need to confirm the transaction on your ERC-20 wallet.
- Wait for the transaction to be added to the Ethereum blockchain.
I want to sincerely appreciate the professor @gbenga for these wonderful lectures I have really learnt a whole lot from it and from my research too I have discovered that many other applications are built using the Ethereum Blockchain. So am most grateful for these knowledge given.